Everything You Wanted to Know About ERP* (*But Were Afraid to Ask), Part 1: What ERP Actually Is (and Why It Matters)
ERP projects are big, scary, and expensive — and half the time, leaders feel like they’re the only one in the room who doesn’t “get it.” Spoiler: you’re not alone. We’ve heard every question (and every mistake) in decades of ERP work, from the factory floor to the boardroom.
This series exists because most ERP conversations skip the uncomfortable parts and jump straight to software demos — which we all love and which always tell us how perfect the final product will be, with all the problems it will fix. We’re doing the opposite. No jargon, no sales pitch — just straight answers from decades of real-world ERP work.
Here it is: the real FAQ — no fluff, no jargon, just telling it like it is (TILI² FTW!).
In this installment, we’re talking about what ERP actually is and why it matters.
“ERP isn’t just software. It’s the nervous system of the organization.”
What exactly is ERP?
Enterprise Resource Planning (ERP) systems grew out of manufacturing software in the 1970s and 80s, when computers were expensive, interfaces weren’t good (but you could actually use the keyboard for everything), and people understood that processes still actually mattered.
First there was MRP (Materials Requirements Planning), which helped manufacturers figure out what parts to order and when. Then came MRP II, which pulled in not just materials, but machines and people — the broader set of resources needed to get work done.
From there, ERP kept expanding. Today, ERP systems bring together almost every major business function in one place:
- Sales and order management
- Purchasing and inventory
- Production and quality
- Service and customer support
All of which tie tightly into finance: general ledger, payables, receivables, cash management, and reporting.
“... you’ve just bought an expensive new way to see your old problems...”
Why does ERP matter?
So, what does that really mean? ERP has become the backbone of how most companies operate. Instead of every department running its own spreadsheets or siloed apps, ERP creates (well, is supposed to create) a single source of truth for data and processes.
Done right, it reduces re-keying, prevents errors, and gives leaders a clearer picture of what’s happening across the business.
And that’s why it matters: ERP isn’t just “software.” It’s the nervous system of the organization. Technology only works if the people and processes around it are clear and aligned.
If you implement ERP without that alignment, you’ve just bought an expensive new way to see your old problems (not that there’s anything wrong with that).
ERP is never just about software — it’s about how your company works. The technology matters, but culture, clarity, and leadership determine success.
If you’ve been “afraid to ask,” now you know: there are no dumb questions in ERP… except the ones you didn’t ask before you signed the contract (well, maybe no questions about swallows — African or European).
“The technology matters, but culture, clarity, and leadership determine success.”
What's next?
In the rest of this series, we’ll break ERP and ERP implementations down piece by piece — cost, time, architecture, people, and politics — so you can make decisions with your eyes open instead of crossing your fingers.
If any of this sounds familiar, you’re probably the intended audience here.
Please join us for Part Two, where we’ll talk about the question everyone asks first — and almost everyone underestimates: what ERP really costs (licenses are only the opening act).
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